ACC102 Questions / Answers



Q1 The following transactions relating to debtors were extracted from the books of a company for the month of January 2014: Balance as at 1st January 2014 N725,000 Cash collected during the month N375,000 Bad Debts written off N25,000 Balance as at 31st January 2014 N650,000 Total credit sales during the month of January, 2014 were:
 
 
 
 

Q2 Valuing inventory at lower of cost or Net Realizable Value (NRV) is an application of the accounting concept of:
 
 
 
 

Q3 Which one of the following is a qualitative characteristic of financial statements?
 
 
 
 

Q4 Unpaid expenses relating to an accounting period are treated as:
 
 
 
 

Q5 Marina purchased goods on a credit basis from Jamoh for N100,000 and returned half of the goods to Jamoh subsequently. Which one of the following documents is issued by Jamoh to record the return of goods?
 
 
 
 

Q6 The IASB�??s Framework identifies reliability as one of the four qualitative characteristics of financial information. Which one of the following is not an element of reliability?
 
 
 
 

Q7 The International Accounting Standards Board�??s (IASB) Framework for the Preparation and Presentation of Financial Statements (Framework) is the IASB�??s conceptual framework. Which one of the following does the Framework not cover?
 
 
 
 

Q8 Where, in a company�??s financial statements complying with International accounting standards, should you find dividends paid? 1. Income statement 2. Balance sheet 3. Cash flow statement 4. Statement of changes in equity.
 
 
 
 

Q9 Which of the following statements about bank reconciliations are correct? 1. In preparing a bank reconciliation, unpresented cheques must be deducted from a balance of cash at bank shown 2.A cheque from a customer paid into the bank but dishonoured must be corrected by making a debit entry in the cash book. 3. An error by the bank must be corrected by an entry in the cash book. 4. An overdraft is a debit balance in the bank statement.
 
 
 
 

Q10 Which of the following statements are correct? 1. A company�??s authorised share capital must be included in its published balance sheet as part of shareholders�?? funds. 2.If a company makes a bonus issue of ordinary shares, the total shareholders�?? interest (share capital plus reserves) remains unchanged 3. A company�??s statement of changes in equity must include the proceeds of any share issue during the period. 4. A company must disclose its significant accounting policies by note to its financial statements.
 
 
 
 

Q11 Consumer price index (CPI) or �?��?��?�. Is on very important means determine the degree of change in price level (inflation)
 
 
 
 

Q12 An accounting concept which separated the owner of the business and the business is known as:
 
 
 
 

Q13 �?��?��?��?��?�.occurs when certain amount of money that used to buy certain quantity of goods previously, can now only purchase fewer quantity of the same goods
 
 
 
 

Q14 all these are ,means of generating income of the building societies except
 
 
 
 

Q15 the primary aim of establishing a liability society is �?��?�
 
 
 
 

Q16 �?��?��?��?��?�.. are formed registration with the chief register of friend societies
 
 
 
 

Q17 shareholders funds compose of all except
 
 
 
 

Q18 Example of federal government bill purchase on the open market
 
 
 
 

Q19 all the following are charge to appropriation account excepts
 
 
 
 

Q20 All the following are income except
 
 
 
 

Q21 �?��?��?��?��?�.. are business entitle whose main area of operation are to accept cash deposit from the public and other perform other prominent function
 
 
 
 

Q22 Normal gross profit percentage is calculate as �?��?�.
 
 
 
 

Q23 which of the following is not necessary for the purpose of compiling average clause
 
 
 
 

Q24 which of these is not a terminology used in insurance claims accounting
 
 
 
 

Q25 �?��?��?��?��?��?�. Is a period of dislocation for which the insurance was effected and is normally fixed in the policy
 
 
 
 

Q26 which of the two main classes of lease is a non cancellable lease?
 
 
 
 

Q27 which of the following is a finance lease arrangement
 
 
 
 

Q28 periodic payments made by the lesser to the lessor are called
 
 
 
 

Q29 straight line is calculated as follows�?�
 
 
 
 

Q30 all these are treatment of finance charges except
 
 
 
 

Q31 �?��?��?��?��?��?�. Is a contractual agreement between an owner, the lessor and another party the lessee which express the right to use the leased asset for an agreed period of time in return for a consideration
 
 
 
 

Q32 According to SAS II, treatment and disclosure of lease transaction in the book of both
 
 
 
 

Q33 Valuation of livestock and manorial right are carried out by �?��?��?��?�.
 
 
 
 

Q34 Large farms take insurance cover for loss of livestock due to
 
 
 
 

Q35 one major problem with the determination of a plantation is
 
 
 
 

Q36 In using appraised value method which of the following factor should be considered?
 
 
 
 

Q37 Cost method means �?�.
 
 
 
 

Q38 Which of the method can be used to value Arable stock?
 
 
 
 

Q39 What is one approach to valuation of stock of live stock?
 
 
 
 

Q40 Which of the following expenses is not exclusive to farm accounting?
 
 
 
 

Q41 Which of the following account are prepared by farmer�??s
 
 
 
 

Q42 What is the formula for eliminating realized profit from goods sent to branch at cost plus 25%
 
 
 
 

Q43 What did you understand by semi autonomous branch in the context of branch accounting
 
 
 
 

Q44 When is the temporal method applicable for translation of the financial statement of foreign branches?
 
 
 
 

Q45 State how revenue and expense are translated under the closing rate method
 
 
 
 

Q46 Some of the reasons why branch current account may not agree with head office current account are:
 
 
 
 

Q47 Transaction between the head office and independent branches are received in �?��?�.
 
 
 
 

Q48 Head office branch account is a mirror of which account?
 
 
 
 

Q49 One difference between an independent and dependent branch is
 
 
 
 

Q50 Sales of goods at involved price between head office and branch will give rise to one of the following if the items are not sold to an external party, at the end of the period.
 
 
 
 

Q51 Which of the following method of translation would you recommend for an independent foreign branch
 
 
 
 

Q52 The liquidator�??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company�??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. * Calculate the amount of call on refund due to the preference shareholders
 
 
 
 

Q53 The liquidator�??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company�??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. *Assume that the preference share rank prior to the ordinary share. Calculate the call per ordinary shares
 
 
 
 

Q54 The liquidator�??s of Adebayo limited has settle all creditor of the company except three owed N150,000. At the commencement of the liquidation, the company�??s share capital was as follows: 1,000,000 10% preference share of N1 each 85 kobo paid=850. 6,000,000 ordinary share of 50 kobo each, 30 kobo paid=1800. *If the preference share rank prior to the ordinary shares, calculate the amount of call to be made by the liquidator
 
 
 
 

Q55 The effect of bankruptcy on the private estate of the bankrupt is �?��?��?�
 
 
 
 

Q56 A company is winding up if it is �?��?��?�
 
 
 
 

Q57 The word �??liquidation�?� means �?��?�.
 
 
 
 

Q58 When a partnership asset has been pledged for the personal debt of a partner, the creditor would claim as �?��?��?�. and creditor in the �?��?��?��?� estate
 
 
 
 

Q59 Which of the following would contribute to deficiency in liquidation of a company (i) discount on accrued liabilities (ii) liquidation fees (iii) preference divided waved by investors (iv) formation expense
 
 
 
 

Q60 Which of the following is a feature of the statement of affairs prepared when a company is being liquidated?
 
 
 
 

Q61 One use of fire year financial summary is �?��?�.
 
 
 
 

Q62 All the following are excepted to be found in published financial statement of a publicity quoted company except
 
 
 
 

Q63 Which of the following item is found in the company�??s profit and loss account is described as exceptional item
 
 
 
 

Q64 Directors report in the financial statement need not disclose
 
 
 
 

Q65 Which of the following should not be classified on a current liability in a financial statement?
 
 
 
 

Q66 The generally accepted accounting principle, which should be stated in a company�??s accounting polices as it related to inventory, is that stock should be valve at �?��?��?�
 
 
 
 

Q67 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes�?��?�.
 
 
 
 

Q68 Which of these method of depreciation is used by company that make use of loosing tools
 
 
 
 

Q69 According to IAS 16, depreciation means�?��?�.
 
 
 
 

Q70 Even, when the bad debts has been eliminated the accounts..
 
 
 
 

Q71 Bad debts are�?��?�.
 
 
 
 

Q72 A balance sheet of a company is prepared as follows�?��?��?�.
 
 
 
 

Q73 Published profit and loss account is usually prepared �?��?��?�.
 
 
 
 

Q74 On what basis is interest on loan recognized by banks in their P&L account
 
 
 
 

Q75 Exceptional item �?��?��?��?�
 
 
 
 

Q76 An extraordinary item falls
 
 
 
 

Q77 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid
 
 
 
 

Q78 Which of the following is a Non-bank financial institution?
 
 
 
 

Q79 The asset in the balance sheet of a bank are arranged in the order of
 
 
 
 

Q80 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by
 
 
 
 

Q81 One use of fire year financial summary is �?��?�.
 
 
 
 

Q82 All the following are excepted to be found in published financial statement of a publicity quoted company except
 
 
 
 

Q83 Which of the following item is found in the company�??s profit and loss account is described as exceptional item
 
 
 
 

Q84 Directors report in the financial statement need not disclose
 
 
 
 

Q85 Which of the following should not be classified on a current liability in a financial statement?
 
 
 
 

Q86 The generally accepted accounting principle, which should be stated in a company�??s accounting polices as it related to inventory, is that stock should be valve at �?��?��?�
 
 
 
 

Q87 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes�?��?�.
 
 
 
 

Q88 Which of these method of depreciation is used by company that make use of loosing tools
 
 
 
 

Q89 According to IAS 16, depreciation means�?��?�.
 
 
 
 

Q90 Even, when the bad debts has been eliminated the accounts..
 
 
 
 

Q91 Bad debts are�?��?�.
 
 
 
 

Q92 A balance sheet of a company is prepared as follows�?��?��?�.
 
 
 
 

Q93 Published profit and loss account is usually prepared �?��?��?�.
 
 
 
 

Q94 On what basis is interest on loan recognized by banks in their P&L account
 
 
 
 

Q95 Exceptional item �?��?��?��?�
 
 
 
 

Q96 An extraordinary item falls
 
 
 
 

Q97 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid
 
 
 
 

Q98 Which of the following is a Non-bank financial institution?
 
 
 
 

Q99 The asset in the balance sheet of a bank are arranged in the order of
 
 
 
 

Q100 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by
 
 
 
 

Q101 One use of fire year financial summary is �?��?�.
 
 
 
 

Q102 All the following are excepted to be found in published financial statement of a publicity quoted company except
 
 
 
 

Q103 Which of the following item is found in the company�??s profit and loss account is described as exceptional item
 
 
 
 

Q104 Directors report in the financial statement need not disclose
 
 
 
 

Q105 Which of the following should not be classified on a current liability in a financial statement?
 
 
 
 

Q106 The generally accepted accounting principle, which should be stated in a company�??s accounting polices as it related to inventory, is that stock should be valve at �?��?��?�
 
 
 
 

Q107 In accordance with section 334 of CAMA, cap c20, LFN 2004 the financial statement of a private company need not includes�?��?�.
 
 
 
 

Q108 Which of these method of depreciation is used by company that make use of loosing tools
 
 
 
 

Q109 According to IAS 16, depreciation means�?��?�.
 
 
 
 

Q110 Even, when the bad debts has been eliminated the accounts..
 
 
 
 

Q111 Bad debts are�?��?�.
 
 
 
 

Q112 A balance sheet of a company is prepared as follows�?��?��?�.
 
 
 
 

Q113 Published profit and loss account is usually prepared �?��?��?�.
 
 
 
 

Q114 On what basis is interest on loan recognized by banks in their P&L account
 
 
 
 

Q115 Exceptional item �?��?��?��?�
 
 
 
 

Q116 An extraordinary item falls
 
 
 
 

Q117 Under the prudential guideline, facilities classified as doubtful refer to loans that have remained unpaid
 
 
 
 

Q118 Which of the following is a Non-bank financial institution?
 
 
 
 

Q119 The asset in the balance sheet of a bank are arranged in the order of
 
 
 
 

Q120 The format in which the final account of a limited liability company should be published in Nigeria is prescribed by
 
 
 
 

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